More than 100,000 companies—about one in every 270 American businesses—have landed in bankruptcy court since the downturn began 18 months ago, according to data compiled by Oklahoma City-based Jupiter eSources, which tracks bankruptcy filings through its AACER database.

With a 40% annual increase in bankruptcies, some banks are encouraging companies to liquidate their assets rather than launch turnaround plans. Two reasons for the push: Consumer spending is expected to continue to lag, and credit remains tight. BusinessWeek